Some believe once your superannuation account is set up when you start working, the rest is done for you.
While that’s true in part, taking a ‘set-and-forget’ approach may mean you’ll miss out on opportunities to grow your super faster. Opportunities that could allow you to retire sooner than you thought possible.
Taking advantage of strategies that can offer you a better long-term result with your super is an important part of planning ahead for your retirement, and will ensure you’re on the right track to achieving your dream retirement.
Here are 3 quick steps to boosting your super:
#1: Consolidate your Super Accounts and Save on Fees
Have you gone through the process of changing jobs and filling out multiple documents to get started in your new position. If so, you may have more than one super account. Consolidating your super accounts means combining multiple accounts into one account.
Before you decide to consolidate your super, there are a few things you should look at first:
- Check you are receiving the right amount of super payments from your employer. If you are employed your employer should be paying you the minimum super guarantee, which is 10% of your income. You can easily check this on your payslip, through your myGov account, or directly through your super fund.
- Check to see if you hold any insurance through any of your super funds. You may have some cost-effective and valuable cover that could be lost. If you were to change funds, you may not be entitled to receive or even implement the same cover again.
- Make sure you do your research to understand the differences in super account options and consolidate your super into a fund that suits your individual needs.
To help you make the right financial decisions with your superannuation, seek advice from an experienced financial adviser.
#2: Choose The Right Investment Strategy
Check your super fund’s investment options and decide what is right for you. What may be considered right for you, may be different to what is right for your friends or family.
It’s important for you to consider your age, your investment risk tolerance, and the amount of time you have left until you’re able to access your super, when making decisions about how you would like your super invested.
Here are some common pre-mixed investment options for you to consider:
- Conservative: there’s less risk involved, and you can expect lower returns over the long term.
- Balanced: includes a mix of low risk and high risk investments, with the aim to provide reasonable returns in the medium to long-term.
- Growth: aims to provide you with higher returns over the long term but involves a higher risk of loss in years of poor market performance.
You may be 10+ years away from your retirement and while it can seem safe to choose the conservative investment strategy, you could miss out on the potential higher long-term returns that the growth or balanced investment options offer.
These options provide more volatility shorter term but you may be rewarded with higher returns in the long term.
To avoid confusion and help you choose the right investment options, a financial adviser can educate you and help evaluate all your available options, allowing you to make the right financial decisions for your situation.
The Ethical Investment Strategy
Many investors are increasingly concerned about investing to contribute to a brighter future for our planet and society.
Choosing an ethical investment option will provide you with peace of mind that your money is being invested in companies that meet certain Environmental, Social and Governance (ESG) standards.
#3: Make Voluntary Contributions to Instantly Boost Your Super
You may be in a financial position to make extra, voluntary contributions, which will grow your retirement savings and potentially reduce the amount of tax you pay
Check out which voluntary contributions you can make to boost your super – here.
Seeking Retirement Planning Advice on the Gold Coast?
It’s always a good idea to look ahead, especially when it comes to your financial future. With the right financial strategies, the right advice, and guidance from someone you trust, anything is possible.
Interested in financial planning for retirement? Cambio Group can assist you at every financial stage of your life. With our dedicated team, you can achieve your goals within your desired timeframe.
Disclaimer: The information (including taxation) in this website does not consider your personal circumstances and is of a general nature only – unless otherwise stated. You should not act on the information provided without first obtaining professional advice specific to your circumstances.
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